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Home My WebLink About2014/05/06-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION TU�SDAY, MAY 6, 2014 Present: President Danny Scai�th Vice President Gyna Bivens Treasurer W. B. "Zim" Zimmerman Trustee Betsy Price Trustee Salvador Espino Trustee Jungus Jordan Trustee Dennis Shingleton Trustee Kelly Allen Gray Trustee Joel Bus•ns Cit staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Administrator Cynthia Garcia, Assistant Administrator 1. Call to Order. With a quorum present President Scarth called the meeting to order for the Board of Directors of the�Fort Worth Local Development Corporation (Cotporation) at 1:58 p.m, on Tuesday, May 6, 2014, in the Pre-Council Chambei� of the Fort Worth Municipal Building, 1000 Tlu•ockmorton Street, Foi�t Worth, Texas, 2. Approval of Minutes of ihe February 4, 2014, Meeting. President Scarth opened the floor for a inotion on the approval of the minutes of the February 4, 2014, meeting. Motion was made by Trustee Bivens and seconded by Trustee Shingleton to approve the February 4, 2014, minutes of the Coi�oration as presented. The motion passed 9-0. 3. Written Reports: Fort Worth Local Development Corporation Financial Report through March 31, 2014. There was no action or discussion on this item. CITY OI' FORT WORTH, TEXAS FORT WORTH LOCAL D�V�LOPM�NT CORPORATION TU�SDAY, MAY 6, 2014 PAG�2 4. Considei� and Adopt Resolution Entering into a Lease Agreennent for Integrys Transportation Fuels DBA Trillium CNG on the Property Located at 4600 Blue Mound Road. Ms, Cynthia Garcia, Assistant Administrator, presented a PowerPoint brieiing titled, "Lease with Integerys Transportation Fuels dba Trillium CNG". She displayed an aerial view of the proposed lease site and added that the pz�operty was located at 4600 Blue Mound Road. She advised of the various access sites to the property and advised of three other companies also located on the sanne site, She stated that Trillium operated CNG fueling stations across the United States and had six stations opening in the next year. She added that Trillium as ii� negotiations with two major companies in the area to use the fueling station. Ms. Garcia displayed a map reflecting CNG fueling stations across the United States then displayed an aerial view of the site that depicted the proposed improvements, She stated that there would initially be two fueling stations with the possible expansion to four filling stations. She completed her presentation by summarizing the recommended lease teims as follows; � 10-year lease of approximately 1,5 acres • Lease ter(n began on May 15, 2014, and expires on May 14, 2024 • Rent of $1,000.00 per month plus $0.10 for each gallon sold — minimum of 400 gallons sold per year or the lease terminates • Trillium will constiuct two fueling lanes at beginning but plans to include expansion of up to 4 lanes o Will be fully completed within 10-12 weeks • Trillium pays all costs of iinprovements, bringing utilities to the site, permits and any other costs necessary for the development • Trillium pays utilities, taxes and insurance • Two 5-year renewal teims — Rental Rate to be determined at the time of renewal There was no discussion on this item. Motion was made by Trustee Bi.uns and seconded by T��ustee Shingleton to adopt Resolution No. FWLDC-2014-02 Entering into a Lease Agreement for Integrys Transportation Fuels DBA Trillium CNG on the Property Located at 4600 Blue Mound Road. The motion passed 9-0. 5. Consider and Adopt Resolution for a Loan from Southwest Bank for the Southwest Municipal Court Building Located at 3741 S.W. Loop 820 Mr. Jay Chapa, Administrator, presented a PowerPoint briefing titled, "Appxoval of Loan for the Southwest Municipal Couz�t Building Located at 3741 SW Loop 820, He displayed a slide that reflected the fi�ont of the Southwest Municipal Court building and then summarized the original approved proposal that was approved by the FWLDC in February 2014. He advised that the proposal was being amended to remove the assignment of the loan with Southwest Banlc and enter into a new loan with Southwest Bank for the remaining 87 months with a rate @ 2.93%. He added that this better rate provided for a small return to the FWLDC. CITY Ol�' I'ORT WORTH, T�XAS rORT WORTH LOCAL D�V�LOPM�NT CORPORATION TU�SAAY, MAY 6, 2014 PAG�3 He completed his presentation by stating the staff recommended approving the resolution authorizing the FWLDC to enter into a load with Southwest Banlc to be secured by a lease of the Southwest Courts building by the City of Foi�t Woi�th, There was no discussion on this item. Motion was made by Trustee Burns and seconded by Trustee Shingleton to adopt Resohrtion No, FWLDC-2014-03 Authorizing a Loan from Southwest Bank for the Southwest Municipal Court Building Located at 3741 S.W. Loop 820. The motion passed 9-0. G. Consider and Adopt Resolution for a Loan from Pinnacle Banlc for the Lancaster Mixed Use Project Mr. Jay Chapa, Administ�•ator, presented a PowerPoint briefing titled, "Consideration of I;oan for the Pinnacle Bank Place (Former Lancaster Place Project). He displayed two aerial views of the property and advised that the project would be comprised of 630 apartments with retail on the street-level. He added that the new parking garage would be on the north side of the building. He provided the following project update: • Design worlc for mixed use development is substantially complete • Contractor and management company have been selected and contract should be signed in June 2014 • Acquisition of mixed use development property, replatting, vacation and Downtown Design Review Board approvals are underway • Engineering and surveying have been completed • All HUD consents for the HOME funds have been received • Pinnacle Bank to pztrchase a portion of the gt•oz�nd floor for �•etail band and back office operat.ions • Pinnacle Bank to p��ovide financing for the project Mr. Chapa then displayed four slides which reflected elevations for the noi�th and south sides of the building, He also displayed a slide that reflected four elevations of the parking garage. He advised of the following financing terms; � Lender; Pinnacle Banlc • Boi-�ower: Lancaster Coilidor Redevelopment LLC • Loan Amount: up to $16,500,000,00 for the mixed use development • Interest Rate: o During construction (18-months): Fixed at 3.75% o Years 2.5 tluough 5: Fixed at 4.10% o Years 6 through 10: Fixed at 5.25 ■ Blended rate of 4.6% (during first 10 years) ■ Approximately 2% lower than other loan option � Term; 10 years � Amortization: 25 years � 1% origination fee •$10,000.00 Commitment fee payable toward origination fee at closing • Loan secured by property and project CITY Or FORT WORTH, T�XAS FORT WORTH LOCAL D�V�LOPM�NT CORPORATION TUESDAY, MAY 6, 2014 PAG�4 Mr. Chapa explained the conditions to financing as follows; •"Piruiacle Banlc Place" name o�l the building • Purchase 8,500 square feet of retail space o Westein coiner of building o Purchase price $1,381,250,00 ($162,50 per s� � Motor bank drive tluu facility on the fiist floor of the parlcing garage — Pinnacle to prepay 50 year lease in garage � Lease 30 parking spaces to be used by Pinnacle Bank; pay prepaid for 50 years � Finance the constiuction and peimanent tnancing • FWLDC to open a$500,000.00 Cei�tificate of Deposit with Pinnacle Bank to serve as added constiuction overrun and lease-up risk mitigation Mr. Chapa then provided the following information pei�taining to the rislc assessment of the loan; • Conservative pro-formal used for financing the project overall: o Assumes 24-month lease up on apartments until stabilization o Analysis provides for 1.25 loan coverage o Assumes a stabilization lease up tei7n of 30 months on the retail space • Apartment management firm contracted on the project predicts stabilization to be reached in 6 months or less based on other projects downtown and on near west side • Retail lease up is extremely conservative especially with several interested potential tenants having already contacted staff about the delivery of the project and the bank as an anchor tenant • Purchase and long-teim lease agieement with the lender who has comrnitted to provide the construction and permanent financing of the project provides added stability • FWLDC already has a banlcing relationship with Pinnacle, risk mitigation CD provides higher return than cui7•ent checking account Mr. Chapa concluded his presentation by providing the staff's recommendation: • Approve a resolution providing for: o Authority to provide guaranty for a loan from Pinnacle Bank to the Lancaster CoiYidor Redevelopment, LLC, single asset entity, for $16,500,000.00 to cause the construction of mixed use development • Authorize the expenditw•e of up to $10,000.00 for the loan commitment fee • Authorize opening of a Certificate of Deposit of $500,000.00 with Pinnacle Banlc • Authorize any other actions requit•ed in connection with such loan agreement Tllere was no discussion on this item, Motion was made by Trustee Burns and seconded by Trustee Shingleton to adopt Resolution No. FWLDC-2014-04 Authorizing a Loan from Pinnacle Bank for the Lancaster Mixed Use Project. The motion passed 9-0. 7. Executive Session — President Scarth stated that he had been advised that an Executive Session was not necessary to discuss the following items: CITY OF FORT WORTH, T�XAS FORT WORTH LOCAL DCV�LOPM�NT CORPORATION TU�SDAY, MAY 6, 2014 PAGE 5 A, Seek the advice of its attorneys concerning the following items that are exempt fi•om public disclosure under Ai�ticle X, Section 9, of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code: (i) legal issues concerning any current agenda item; and B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations related to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. 8. Requests for Future Agenda Items. President Scai�th opened the floor on requests for future agenda items. No requests were made. 9. Adjourn. With no further discussion, President Scarth adjourned the meeting of the Foi�t Woi�th Local Development Coiporation Board at 2:12 p.m. on Tuesday, May 6, 2014. These minutes approved by the Foi�t Worth Housing Finance Corporation Board of Directors on the 5��' day of August 2014. � , Yresident Prepared and res�ectful�ibmitted by: Mary J. Kc�ys�r,'T�YMC�MC City Secretary